OPTrust ups its holdings in Ontario green bonds

The OPSEU Pension Trust is making an additional purchase of $100 million in Ontario government green bonds, bringing its allocation in the asset to about one per cent of its total holdings.

The bonds are a tool the provincial government uses to finance transit and energy efficiency projects, according to the press release.

“As a pension management organization, it’s critical we invest and manage our portfolio in alignment with our members’ interests,” said James Davis, chief investment officer of the OPTrust. “Our investment in Ontario green bonds aligns not only with the interests of our members, but the interests of the province and environment as a whole.

“For OPTrust, the purpose of responsible investing lies in the recognition that [environmental, social and governance] factors can impact investment risk and return. As a long-term investor, we look at challenges and opportunities that could affect members and their retirement security across multiple generations. Climate change presents a real, measurable risk to our members that can’t be ignored in our investment approach.”

Indeed, the OPTrust produced a proprietary action plan on climate change in 2018, in addition to its reporting in accordance with the recommendations of the task force on climate-related financial disclosures.